Peru | Central Bank reaffirms strongly accommodative monetary policy stance

The Board of the Central Bank decided to maintain the monetary policy rate at 0,25% in March. The Bank renewed its commitment to maintain a strongly expansive stance for a prolonged period in spite of a faster recovery of global economic activity.

Key points

• Key points:
• The monetary authority stated that it expects inflation to remain in the target range throughout 2021 and 2022 and print in the lower half (between 1 and 2 percent) in 2022.
• The monetary authority pointed to the reversal in February of transitory factors that pushed inflation in January.
• The Bank also remarked on its efforts to provide liquidity and their impact on credit.
• The Central Bank now expects a faster recovery of global economic activity thanks to the advances in the vaccination process and fiscal stimulus programs in the US.

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